Audit 405724

Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP02236 - 2025 Pass-Through Agency: Ramsey County Pass-Through Number: SLFRP0236 Award Period: March 3, 2021 – December 31, 2026 Type of Finding: Material Weakness over Internal Controls Criteria or specific requirement: 2 CFR 200.303 requires that recipients and subrecipients receiving federal awards establish, document and maintain effective internal control over the federal awards that provides reasonable assurance that the recipient or subrecipient is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: The rental units supported by the grant can only be occupied by households whose annual income does not exceed certain thresholds. Annual income is documented for purposes of eligibility and applications are maintained supporting that tenants are eligible. From our discussions with management there are no documented internal controls surrounding the eligibility process. Context: No instances of non-eligible tenants were noted in our testing, and this finding relates only to implementation of a documented internal control process. Cause: The program was new during the fiscal year, and management was not aware of the requirement for a documented internal control process. Effect: Errors in the eligibility process could occur without a documented internal control process. No errors were noted in our testing. Repeat Finding: No Recommendation: We recommend the Organization implement a review process for eligibility determination for the program. Views of responsible officials: There is no disagreement with the audit finding.